Timeline for Can the bid price for selling the same call option in calendar spread be different from that in covered call?
Current License: CC BY-SA 2.5
11 events
| when toggle format | what | by | license | comment | |
|---|---|---|---|---|---|
| Feb 28, 2011 at 4:57 | vote | accept | user2494 | ||
| Feb 24, 2011 at 4:55 | comment | added | user2494 | I obtained the cash. I am really afraid of silver now. But they said my account will take a while to be ok. Is it ok to sell silver in the time period? | |
| Feb 20, 2011 at 10:13 | comment | added | user2494 | HI I recently received a day trading margin call of $-$14,852.63 requirement. I do not have that much money. What should I do? Should I close my trades and take all cash out? ( The system labeled me as day trader) | |
| Jan 25, 2011 at 4:32 | comment | added | JTP - Apologise to Monica♦ | I am old (48) and have been playing options for nearly 30 years. Not very often, I pick and choose carefully. See my article tinyurl.com/5ux8gc9 about a winning Gold play using options. I suggest you look at option tables and study the difference between strikes. There are times you'll find some decent opportunities. | |
| Jan 25, 2011 at 2:41 | comment | added | user2494 | Wow... interesting interpretation of numbers! Thank you so much Joe! Is there a knack to interpret spreads and price of bid and asks?? | |
| Jan 25, 2011 at 2:24 | comment | added | JTP - Apologise to Monica♦ | Interesting question. In general, I'd say that with the sophisticated computer software the pros use, it would be tough to find such a deal. That said, it's the little guy flying under the radar that stands the chance to benefit from deals too small for those same pros. For example, the Jan 13 spread (on C) from $4 to $5 can be had for 55 cents. Will Citi not recover past $5 by 2013? The market says nearly 2 to 1 against. $4.55 breakeven. The gov still owns a huge amount of Citi. | |
| Jan 25, 2011 at 2:16 | comment | added | user2494 | Thank you Joe. Also one more question. I heard usually there is no arbitrage in basic option strategies. However could we combine options and gain something? When I played with the software some combinations does not seem to have any loss. One way to interpret this is the following: If there is a sure way to lose money, the negative of that way should be a sure way to win money. | |
| Jan 25, 2011 at 2:13 | comment | added | JTP - Apologise to Monica♦ | I understand what you are trying to do. The bid/ask should be the same for an option purchase or sale separate or part of a spread. | |
| Jan 24, 2011 at 23:53 | comment | added | user2494 | Is this a spread issue??? The bid price itself seems different. | |
| Jan 24, 2011 at 22:25 | comment | added | user2494 | Hi Joe: I am doing SELL TO OPEN on C at exactly the same strike price. The software I am using gives me different bid prices as premiums - higher bid price for covered call and lower bid price for calender spread. So I do not know how much premium I will receive for either case. I think I should receive the same premium. Is that not the case? | |
| Jan 24, 2011 at 17:20 | history | answered | JTP - Apologise to Monica♦ | CC BY-SA 2.5 |